This Selected Issues paper investigates why New Zealand's inflation is higher and further from target than comparator economies considering two main hypotheses: (1) the persistence of pandemic era shocks, and (2) strong migration inflows fuelling demand. The paper finds that, like in many...

The New Zealand economy slowed considerably in 2023, following a period of strong growth, and some previous significant imbalances are finally correcting. Tight monetary policy has put inflation on a meaningful downward path but remains high. Some of the overvaluation in housing prices has also...

This Selected Issues paper on New Zealand discusses addressing climate change. projections suggest the gap between New Zealand's emissions targets and the projected path have narrowed significantly though more needs to be done if the Nationally Determined Contribution for 2030 is to be met....

The 2023 Article IV Consultation discusses that New Zealand's economy is in the midst of a necessary, policy-induced slowdown following the strong post-pandemic recovery. With exemplary management of the pandemic, New Zealand recovered faster than most other advanced economies. The economy is...

KEY ISSUES Outlook and risks The economic expansion is becoming increasingly embedded and broad-based, driven by supportive financial conditions, historically high commodity prices, resurgent construction activity related to the Canterbury post-earthquake rebuild and general housing shortages,...

New Zealand's management of the pandemic, including health policy and macroeconomic policy support, has been effective in ensuring economic recovery. Output has already recovered to above potential, the labor market is tight, and inflation has risen to above the Reserve Bank of New Zealand's...

New Zealand’s economy continued to grow at a moderate rate, in part reflecting the effects of the recent drought and inflation. The macroeconomic policy has been framed to absorb adverse shocks with flexible exchange rates to serve as buffer. The planned pace of deficit reduction is balanced...